Chapter 1 Internal Auditing

Question 1

What is Internal Auditing

Answer 1

Internal auditing is

• an independent,objective
• assurance and consulting
• activity
• designed to add value and improve operations.

It helps an organisation reach its objectives by bringing

• a systematic
• disciplined approach to
• evaluate and improve
• the effectiveness of risk management, control and governance

Question 2

Waaruit bestaan die IPPF

Answer 2

1- Definition
2- Code of ethics
3- International standards
4- Position papers
5- Practice advisories
6- Practice guides

Question 3

The 8 Audit postulates

Answer 3

1- No conflict of interest
2- Auditor must act exclusively as an auditor
3- Professional status
4- Financial data is verifiable
5- Internal control reduces the possibility of errors and irregularities
6- Application of GAAP = fair representation
7- True in the past = true in future
8- Financial statements submitted to the auditor are free of collusive and unusual irregularities

Question 4

How to answer a IPPF question

Answer 4

1- Are the actions in violation?
2- Specify which principles are in breach
3- Describe the specific rule that addresses the issue
4- Adress the Standard that was violated
5- Make a proposal on how to deal with problem